South Africa's rand, government bonds and stocks surged on Wednesday, paring some losses amassed since the start of the Iran war after US President Donald Trump agreed to a two-week ceasefire, a move that eased fears of energy-driven inflation.

Trump's turnaround came shortly before a deadline he had set for Iran to reopen the Strait of Hormuz - a key shipping route for about 20% of global oil - or face widespread attacks on its civilian infrastructure.

At 0738 GMT, the rand traded at 16.4150 against the dollar, roughly up 2.4% from Tuesday's close and around its strongest level in almost a month.

The currency has been highly sensitive to swings in global risk sentiment since the conflict started on February 28, triggering Iranian retaliation and fuelling volatility across emerging markets.

South Africa's benchmark 2035 government bond soared, with the yield falling 50 basis points to 8.6%. On the Johannesburg Stock Exchange, the Top-40 index was last up 5.2%.

News of the ceasefire capped weeks of market choppiness, sending oil prices tumbling below $100 a barrel and lifting assets in net-energy importing nations like South Africa.

"Depending on how negotiations unfold, the rand may extend its recovery towards the 16.00 per dollar handle and unwind most of the damage seen earlier this month," ETM Analytics said, adding that conditions remain tentative and fragile.

It said rising prices for South Africa's key exports, gold and platinum, should provide additional support to local assets. Meanwhile, the US dollar was little changed against a basket of currencies as investors awaited minutes of the Federal Reserve's March policy meeting on Wednesday, and the upcoming US inflation indicators, including the Personal Consumption Expenditures and the Consumer Price Index.